A machine with a cost of $130,000,accumulated depreciation of $85,000,and current year depreciation expense of $17,000 is sold for $40,000 cash.The amount that should be reported as a source of cash under cash flows from investing activities is:
A)$45,000.
B)$5,000.
C)$17,000.
D)$28,000.
E)$40,000.

Question

Quizplus · Accepted Answer

The cash flow from investing activities should report the cash received from the sale of the machine, which is $40,000.

A Machine with a Cost of $130,000,accumulated Depreciation of $85,000,and